Conceptual Models of Consumer Perspective - Essay Example

Introduction

The topic of consumer behavior has long been an issue that is extensively discussed and researched in the field of management research. Consequently, the theory has had a significant impact in this field, leading many researchers and scholars to come up with their own ideas regarding the topic. Atanu Adhikari, through his article ‘Consumer Schools of Thought in Management Research: A Theoretical Perspective’, has also contributed in the field of management research by stating these ideas regarding consumers’ perspective in management and different theories of consumer behavior. It was during the period between 1950 and 1975, when consumers’ schools of theory pushed the theory related to perspectives of consumer behavior at the forefront of conversation and argument by assuming a leading role in the field of management research. It is since then that many empirical research scholars have made serious efforts in order to set forth their ideas regarding the theory .of consumer behavior. As a consequence of that, three fundamental theories of consumers’ perspective in management were introduced: Behavioral theory, Activist’s theory and Systems theory. The paper by Adhikari (2008) illustrates development of these schools of thought and their various dimensions.

This is a critical literature review of the article ‘Consumer Schools of Thought in Management Research: A Theoretical Perspective’ by Atanu Adhikari, where the researcher will cater to review ideas set forth by the author. The following section involves a thorough discussion of critical issues related to the three schools of thought explained by the author. The ideas will be critically examined and corresponding arguments set forth by other researchers will also be provided (if relevant). Finally, a strong conclusion will be given that will include reflection of the researcher after conducting the literature review.

Discussion

The Buyer behavior school of thought, as highlighted by Adhikari (2008), sets forth various concepts of consumer behavior; this highlights implementations of such conceptual models into managerial strategies as well as decision making in the public, private and non-profit sectors. The ideas presented by this school of thought explain that there is a linkage between needs of consumers and goods that are exchanged in the market. Adhikari (2008) has illustrated that non-material goods such as, goodwill, personal services and patents, play a crucial role in influencing behavior of consumers towards a particular product or service. However, as far as usefulness of material object and human activity to a person is concerned, they only become relevant when the following conditions are satisfied: there is a need for the material object or the activity; the object or activity possesses certain properties that will fulfill the need; properties required to satisfy the need are recognized; and consumers have control over the object or activity. Majority of authors have shown their agreement to the first three conditions. Nonetheless, disagreements were voiced by several researchers over the fourth condition. According to Alderson (1957), the fact that a good is not useful until and unless the user has a legal control over its usage is irrelevant for a good that has not yet been purchased. Although this school of thought has contributed a lot in the field of management research, it has lost track of the roots of management to certain extent (Seth, Gardner and Garrett, 1988). Researchers have commented that owing to deviation from its management roots, buyer’s school of thought contributes very little to improve management practices (Engel, Blackwell and Kollat, 1972).

The Activist’s school of thought explains the theory of consumerism that involves protection of consumers from all those organizations with which there is a trade of relationship. This school of thought takes into account the perspective of receivers of management practice, which includes consumers as well as the society as a whole. The activist school of thought sets forth the theory of social movements striving to enhance the rights and powers of sellers with respect to the buyers. The very first consumer movement was triggered by rising prices. That is why this school of thought was introduced in the field of management research so as to enhance the negotiation power of buyers relative to the sellers. This school of thought has made major contributions by citing the most pivotal business and consumer responses to ethical and social issues, thereby highlighting obligation of consumers in the process. However, the activist school of thought should cater to inspect each and every aspect of protest tactics and provide equal opportunity to all parties to present their opinions. In addition, researchers who continuously study different theories related to this school of thought should create a response mechanism, which will facilitate the following factors: understanding of consumer’s experience, listening to consumer complaints and responding appropriately and educating consumers.

The Systems school of thought states that management must be viewed as a system. This school of thought has two extensive divisions; Microscopic and Macroscopic Management System. According to the systems school of thought, agency, activity and product are the most crucial aspects of macroscopic management system (Adhikari, 2008). According to the author, a system perspective integrates various elements or components into a strong network of management. As far as microscopic management systems are concerned, new products, advertisement and models of distribution are the three most important dimensions. Although the systems school of thought identifies various aspects of management system, the drawback lies in the failure to explain the rigorous functions of management. This is precisely because its interlocution was based more on economic perspective than the managerial perspective. This fails to assess the depth of ideas given in the field of management.

Conclusion

Having done an in-depth study of the conceptual models of consumer perspective in the field of management research, it can be said that Buyer, Activist’s and Systems schools of thought are based on non-economic standpoint of marketing. Nevertheless, this analysis is obtained from the surface. An in-depth analysis depicts prevalence of an economic perspective. Among the three schools of thought, the theory of consumerism explained by the activist’s school of thought has had a major contribution in the field of management research. The systems school of thought is also interactive in nature, which involves explanation of issues related to moral hazard and agency theory. Despite the fact that all these three schools of thought have their own inadequacies, they have made considerable contributions in developing theories of consumers’ perspective in management.

Reference List

Adhikari, A., 2008. Consumer Schools of Thought in Management Research: A Theoretical Perspective. The Icfaian Journal of Management Research, 7(2), pp. 67-75.

Alderson, W., 1957. Marketing Behavior and Executive Action: A Functionalist Approach to Marketing Theory. Illinois: Irwin.

Engel, J. F., Blackwell, R. D. and Kollat, D. T., 1972. The current status of consumer behavior research: developments during the 1968-1972 period. [online] Available at: <http://www.acrwebsite.org/search/view-conference-proceedings.aspx?Id=12031> [Accessed 20 March 2014].

Seth, J. N., Gardner, D. M. and Garrett, D. E., 1988. Management Theory: Evolution and Evaluation. 1st edition. New York: John Wiley and Sons.